The FINANCIAL -- The European Bank for Reconstruction and Development (EBRD) is deepening its cooperation with Georgia’s BasisBank through a $31.5 million package of loans including support for small and medium-sized enterprises (SMEs), energy efficiency measures and access to trade finance.
BasisBank will provide sub-loans to local companies to finance acquisitions, expansion or modernisation, and working capital needs. Support for private businesses is one of the EBRD’s priorities throughout its activities, and in Georgia the private sector share of the Bank’s investments stands at 91 per cent, according to EBRD.
The package includes $20 million of financing for corporations and $10 million for SMEs, including a line of credit for energy efficiency investments under the Caucasus Energy Efficiency Programme. It will allow BasisBank to enter and develop a new business segment by promoting and financing energy efficiency investments among local businesses and residential clients.
BasisBank is already an experienced provider of trade finance and joined the EBRD Trade Facilitation Programme in 2007. To meet further demand the new EBRD financing package is increasing the bank’s trade finance limit by $1.5 million, EBRD said.
Nick Tesseyman, EBRD Managing Director, Financial Institutions, said: “We are very pleased to sign this package today as it will allow us to further reinforce a strong partner and thus also deepen the EBRD’s support for the Georgian economy. The package covers the needs of local businesses well and illustrates what we can offer to contribute to their successful development through a strong and leading local-market participant like BasisBank.”
“We are very happy about the successful cooperation between BasisBank and the EBRD. This is a new stage in our ongoing relationship. We are sure that the stated package of loans will support corporations and SMEs. Our cooperation will be a significant contribution to the development of the Georgian economy,” said David Tsaava, CEO of BasisBank.
The EBRD is the largest institutional investor in Georgia. Since the beginning of its operations there, the EBRD has invested approximately €2.6 billion in over 178 projects. The Bank focuses on supporting the private sector, investing in energy projects as well as in infrastructure, logistics, telecommunications and the financial sector to support cross-border economic activities.